It’s not all doom and gloom. The ringmasters can choose a different path, unlocking each country's full potential and everyone having access to premium rides instead of holding tickets that don’t count for much and ending up watching the show from the sidelines. The carnival layout can be redesigned, tearing down barriers and creating new bridges – all driven by the power of multilateral cooperation.
Imagine this… a reshaped global economy that is more inclusive, equitable and sustainable. More balanced global GDP growth and the closing of income and wealth inequality - both within and between nations. More countries contributing meaningfully to the global economy, emerging economies becoming the engines of global growth - marking the beginning of a more integrated and inclusive economic order.
Well, these outcomes are linked to South Africa’s objectives for our 2025 G20 presidency which presents a historic opportunity for Africa to champion a forward-looking agenda that addresses some of the most pressing challenges facing the global economy. Guided by the principles of solidarity, equality and sustainability, the South Africa’s leadership has set bold objectives to foster inclusive economic growth, accelerate industrialisation in emerging economies, reduce inequality through employment, secure food for the global population, advance artificial intelligence (AI) and innovation, as well as promote sustainable development – with an extremely bold vision of reshaping the global economy.
Inclusive economic growth addresses the structural inequalities that have long divided nations and communities. The implementation of inclusive growth strategies will enable more equitable participation in the global economy allowing Reapso (a textiles manufacture in Johannesburg) to scale her business globally, a tea farmer in Kenya to export to multitudes of countries or an entrepreneur in Lagos having access to global funding and training opportunities. Initiatives aimed at empowering marginalised groups - women, youth, and small businesses—can flourish, resulting in broader access to markets, finance and opportunities. Policies that encourage technology transfer and knowledge-sharing can foster industrial diversification, reducing dependence on a narrow set of exports. As a result, global trade dynamics can shift and emerging economies can account for a larger share of manufacturing output, enabling a redistribution of economic power that promotes greater global balance.
With this emerges the possibility of a renewed social contract. G20 nations can collectively implement measures to address unemployment, especially among youth and disadvantaged populations. Investments in skills development and education that are aligned with the needs of a rapidly evolving economy can equip workers with the tools to succeed, help close income gaps, and improve living standards. These changes can have profound social impacts. Inequality, a persistent and destabilizing force, could begin to recede. As more people gain access to stable and meaningful employment, social cohesion will improve, fostering a sense of shared prosperity and collective progress.
Investments in agricultural innovation, including the use of AI and precision farming technologies will boost productivity. The world’s population must be fed and we can no longer tolerate astonishingly high statistics about how many people go to bed hungry every day.
Speaking of AI, there is a broad recognition of the transformative potential of artificial intelligence and innovation as drivers of economic growth and societal progress. AI technologies will become a cornerstone of the global economy.
Lastly, and probably one of the more contentious points, will be sustainability development goals. An influential politician has come out saying ‘drill baby drill’ while some developed markets have fired up their coal power stations while asking others to phase them out – threatening to impose sizeable taxes and tariffs on imported products. Decarbonisation threatens economic convergence and the reduction of carbon footprints will come at some economic costs. Regardless, collaboration will be necessary to eliminate biodiversity losses and environmental degradation, and lay the groundwork for long-term economic stability and prosperity.
So, here we are, moving into another exciting year that promises to be filled with bold, ambitious, but attainable goals – against a backdrop of heightened uncertainty from the political shifts that occurred in 2024.
Please be safe and get some much-needed rest over this festive season. We have a lot of work to do.
Happy Holidays!